Tesla has been one of the most highly traded stocks in the past few years, if not then the most famous one at least. Tesla’s stock was holding up this current bear market pretty well until in September, the stock finally gave up and took the beating, and still continues to do so. It closed at $169.91 in the last trading session after falling more than 20% this previous month.
The real question that comes up is whether it is the company’s fault or the CEO, Elon Musk’s fault. It is more about blame than fault since downturns in stocks is expected and common, but Tesla’s stock has been drilled down to 2 year lows.
If you look at the company, than it is doing a fantastic job, actually doing better than expected, record deliveries, improved cash flows, upcoming models, cyber trucks, semi trucks, the infamous robot program and the list goes on. If the company is doing so well, then who is responsible for this bloodbath? Well the lights turn to Elon Musk.
Recently Mr. Musk has had a lot on his place, when does he not anyways. With Twitter, Delaware court hearings, Tesla’s vehicle recalls and many more things, investors have been worried with his other projects and they think that Musk is getting less concerned with Tesla day by day, surely after he sold more Tesla stock worth $4 Billion a few weeks back to save Twitter. Investor confidence has been down since the past few weeks.
But according to a lot of experts and Tesla Bulls, it is believed that after a few weeks, hopefully, Elon should be done with the Twitter story and be completely back into Tesla. Tesla reports its Q4 earnings in January end and it is expected that the company delivers 450,000 vehicles.
The stock is down 57% YTD and has lost more than 12% of its value in the past week. It tends to be the biggest laggard when the market is showing recovery signs. Obviously, it will recover in the long term but for the time being, the boss Elon Musk needs to divert time more time to Tesla, to assure the investors and the world at this stage that he is ALL IN on Tesla.